Infosys has announced a 5-year collaboration with LKQ Europe, one of the leading distributors of automotive aftermarket parts for cars, commercial vans, and industrial vehicles in Europe. Following multiple strategic acquisitions, LKQ has envisioned a corporate programme that entails harmonising business processes, improving product availability, and enabling faster delivery to end customers. Under this collaboration, Infosys will assist in integrating and standardise disparate business processes and systems, to enable synergies and achieve economies of scale.
Infosys was chosen as a strategic partner to lead LKQ Europe’s IT-related business transformation due to its strong credentials in ERP deployment. In addition to its commitment to a long-term collaboration. LKQ Europe will leverage Infosys’ industry expertise in automotive and distribution solutions. The company plans to implement systems with robust capabilities to drive sustainable productivity and support long-term business objectives.
What the key stakeholders say
Varun Laroyia, Chief Executive Officer, LKQ Europe, said, “At LKQ, we are constantly enhancing our market-leading position. This project is an extension of our original programme and focused on building a more streamlined and impactful organisation. With Infosys as our strategic partner, we are aiming to reduce complexities, increase efficiency and leverage our strengths. This will allow us to upgrade our focus on customer-centricity. Ensuring best in class customer experiences and further excel our top position.”
Jasmeet Singh, EVP & Global Head of Manufacturing, Infosys, said, “We are thrilled to collaborate with LKQ Europe. Our partnership will support their transformative journey. Our expertise in harmonizing and digitising complex processes and transforming customer experience aligns perfectly with LKQ Europe’s goals. We are committed to delivering innovative solutions that will streamline LKQ Europe’s operations, support their growth. We aim to ensure LKQ Europe’s continued success in the automotive aftermarket industry.”
Enterprise Times: What this means for business
LKQ Europe appears to be the classic company that has grown through acquisition. Normally, this results in disparate business processes and systems and enables the emergence of data silos within the organisation. As a result, LKQ Europe should benefit from the ‘middleware’ solutions that Infosys provides to enable synergies and achieve economies of scale. Infosys says the partnership will pave the way for seamless integration and growth in the auto parts industry. Analysts and industry pundits can only watch this space.
In March, Infosys published an interesting global research which suggests only 7% of companies have the correct combination of culture and operating structure to boost growth from digital technologies. While digital technologies will never stop evolving, the research emphasised the importance of how companies use tech. It also highlights how businesses structure their organisations to be more agile and responsive. Together these findings further highlight that digital success is contingent on the way a company organises itself around technology. As opposed to being something that can be delivered by technology alone. So, it will be interesting to see how Infosys shapes LKQ Europe’s technology to meet its future needs.
